Recently announced government budget cuts could prove beneficial for the IT outsourcing industry, it has been suggested.

Posting on Computer World, Martyn Hart has claimed the reductions could provide an opportunity for the sector to flourish, rather than diminish.

The expert observed the announcement made by chancellor George Osborne could trigger “real innovation” that could push the industry forward.

He explained new ideas and ways of working are required in order to impress existing clients and secure new ones.

“The benefits to be gained by tapping the needs of markets, experimenting and implementing new initiatives, cannot be underestimated,” he remarked.

Understanding their customers’ needs is a requirement to start winning a greater market share, Mr Hart added.

Chief technology officer and executive vice-president of Presidio Dave Hart argued in favour of IT outsourcing in a Bloomberg article recently, stating the option alleviates the need to build up larger IT departments than is necessary.